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Flanders DC Kenniscentrum
Open Services Innovation
by Marion Debruyne, Wim Vanhaverbeke and Livia Pijakova
Flanders DC Kenniscentrum
Stimulating Creativity in
Flemish Entrepreneurs
Flanders DC - Mission
Stimulating Entrepreneurship in
Flemish Creative Industries
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Flanders DC Kenniscentrum
Flanders DC – Companies
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Flanders DC Kenniscentrum4
Flanders DC – Schools
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Flanders DC Kenniscentrum5
Flanders DC – General Public
Flanders DC Kenniscentrum
Open Services Innovation
by Marion Debruyne, Wim Vanhaverbeke and Livia Pijakova
19-6-2012
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Open Innovation in Services: 2 sides of the same coin
| 19-06-2012 | Creativity Talk: Open Services Innovation7 |
YOUR
COMPANY
Upstream open innovation = with Partners
Downstream open innovation = with Customers
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Value co-creation is the new paradigm
Value co-creationCustomers are part of value chain
From product-centric to personalize customer experiences
Value co-creationCustomers are part of value chain
From product-centric to personalize customer experiences
Word of mouth
Peer influenceCustomers are the best or the worst
marketing tool
Word of mouth
Peer influenceCustomers are the best or the worst
marketing tool
Commoditization risk?More products and innovations
How to be different?
Commoditization risk?More products and innovations
How to be different?
More Information,
more choicesMore informed, network and
empowered customer
More Information,
more choicesMore informed, network and
empowered customer
Sources: Adapted from Prahalad, C.K, Ramaswamy (2004). The future of Competition: Co-creating Valur with Customers. Harvard Business Review
MARKETForum of conversations
between customers, companies & communities
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
They have all done it…
| 19-06-2012 | Creativity Talk: Open Services Innovation9 |
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Upstream + Downstream possibilities:
In Focus:
| 19-06-2012 | Creativity Talk: Open Services Innovation10 |
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Design Co-produce
HealSeeker by J&J Cab Sense
Swift
EUREX –
Deutsche Boerse
ABN Amro
HealSeeker by J&J
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Design with Design with Design with Design with PartnerPartnerPartnerPartner
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Design Co-produce
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with partner:
Janssen Pharmaceutica: Healseeker
� Project started in early 2011 as a
result of an internal innovation
bootcamp
� Sparked by the desire to provide
holistic treatment to children with
ADHD
� Janssen teamed up with a
psychiatric clinic Yulius, a computer
game developer RANJ and a patient
organisation ZITSTIL
� Innovative approach to behavioural
therapy – computer game to train
children in time management and
planning as a complement to
pharmacotherapy
| 19-06-2012 | Creativity Talk: Open Services Innovation11 |
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with partner:
Heal Seeker: Value Creation
� Game is to be used as a
complementary therapy
recommended by physicians
� Children with ADHD are undergoing
behavioural therapy sooner and in a
playful way
� Plans to internationalise once
successful in the Dutch-speaking
market
| 19-06-2012 | Creativity Talk: Open Services Innovation12 |
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with partner:
Healseeker: Value Delivery
� Endorsed by ZITSTIL in Belgium
� Multi-channel approach in
distribution: online and through
ZITSTIL
� 2-pronged strategy in launching –
running clinical trials to prove game
efficacy, but also launching it
without claims
| 19-06-2012 | Creativity Talk: Open Services Innovation13 |
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with partner:
Healseeker: Value Capture
� Product is still in the pre-launch
phase
� Pre-clinical research shows possible
efficacy in achieving the learning
goals
� The initiative opened up new doors
to the gaming market for Janssen –
games geared towards other
therapeutic areas may follow
� So far the investment was done by
Janssen alone, for future RANJ may
share some of it and become a
partner
| 19-06-2012 | Creativity Talk: Open Services Innovation14 |
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with partner:
What can we learn from Janssen?
� Partnerships for Open Innovation
spark up by serendipity: be open to
new contact and maintain your
network
� If you are in a sector, which is
regulated, involve the legal
department from day 1
� Do not be afraid to step out of your
comfort zone to innovate – trust
your partners
| 19-06-2012 | Creativity Talk: Open Services Innovation15 |
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Upstream + Downstream possibilities:
Our Framework
| 19-06-2012 | Creativity Talk: Open Services Innovation16 |
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Design Co-produce
HealSeeker by J&J CabSense
Swift
EUREX –
Deutsche Boerse
ABN Amro
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Flanders DC Kenniscentrum
In some service industries,
co-creation with customers
is DIFFICULT.
But NOT impossible!
17 || 19-06-2012 | Creativity Talk: Open Services Innovation
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with customer:
Swift: Innotribe
� Global cooperative ensuring secure
messaging and transactions within
and between supply chains mainly
in the financial industry
� Innotribe started on 2009 as an
internal company tool
� 2 main functions: change the
company culture and change the
company positioning to the outside
world
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with customer:
Innotribe: Value Creation
� Innotribe gives bright minds from
within and outside the company an
opportunity to realise their business
ideas
� A new channel of meaningful
communication within the company
but also opens the company up to
outside world
� Swift is connected to 8000 banking
institutions
� The unique position enables them to
create an innovation hub
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with customer:
Innotribe: Value Delivery
� The virtual Innotribe is
seamlessly connected to
physical conferences Sibos
� Sibos conferences are
organised to recruit smart
thinkers and get them to
present their ideas in a
“Dragon’s Den” setting.
� Participants have 5 minutes to
present their idea without
powerpoint
� The prize is 50 000 EUR or
Swift’s involvement in
developing the idea
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with customer:
Innotribe: Value Capture
� Swift managed to change its
corporate culture and
reposition itself as an
innovative company
� As a result of the success, in
2011, Swift set up an
incubation framework of 5
Million EUR to be able to
support more than just a
single winning idea
� About 10% of NPD idea inflow
comes from Innotribe –
currently there are 2 projects
about to be launched as a
venture
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with customer:
What can we learn from Innotribe?
� It may take time for an open
innovation initiative to settle
in in your organisation, but do
not give up!
� Make a clever combination of
online and offline to keep the
ball rolling between events.
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Flanders DC Kenniscentrum
…and Swift is NOT alone
practising Open innovation in
the financial industry…
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with customer:
Eurex: Idea Board
� Operating in the business of selling
derivatives in the financial market
� The initial starting point to
strengthen the innovation capability
of the company and use every
opportunity to communicate with
their customers
� Started in 2010, reaching about 350
members by 2011
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with customer:
Idea Board: Value Creation
� Financial institutions are able to
express their ideas on new financial
products to a neutral and safe party
� 10% of the creative inflow in Eurex’s
NPD process comes from the idea
community
� There are ideas that sparked up
within the community in the NPD
pipeline about to be launched
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with customer:
Idea Board: Value Delivery
� Any one of the members can post an
idea to a virtual idea box. This one is
considered by the experts at Eurex
and evaluated.
� Some ideas may be further
developed on a forum, which his part
of the Idea Board. Then the whole
community can contribute to the
development. (only if IP is not
sensitive)
� No reward is offered, companies
benefit from the financial products
created in this collaboration.
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with customer:
Idea Board: Value Capture
� The project is strengthening the
bond between Eurex and its
customers, but also fostering
innovation within the company by
opening up the company culture.
� The Idea Board community would
never have come together in face-
to-face!
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with customer:
What can we learn from Eurex!
� Your customers can become your
partners in development
� Give them room to co-create and
they will do so out of their own
goodwill
� Practice soft launch, start with your
best customers they will then pull
others in
� If you cannot organise co-creation
face-to-face a secured virtual
environment will do the job
� Maintain the feedback loop
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Upstream + Downstream possibilities:
Our Framework
| 19-06-2012 | Creativity Talk: Open Services Innovation29 |
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HealSeeker by J&J CabSense
ABN AmroSwift
EUREX –
Deutsche Boerse
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-produce with partner:
Sense Networks - Cab Sense
� All taxis in New York are equipped
with a GPS device connected to a
register
� The analytical capabilities of Sense
Networks combined with NYC Taxi
&Limousine Commission give
opportunity to provide a new
service
� App launched in 2008 for iPhone,
Android and Motorola
� Predictions of most probable taxi
locations are projected onto the
map of the city as a heatmap
| 19-06-2012 | Creativity Talk: Open Services Innovation30 |
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-produce with partner:
Cab Sense: Value Creation
� The purpose of the app is to
improve the service experience of
travelling by taxi beyond the service
process
� It helps match taxi providers and
taxi seekers in a more efficient way
| 19-06-2012 | Creativity Talk: Open Services Innovation31 |
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-produce with partner:
Cab Sense: Value Delivery
� App is free of charge and
downloadable from iTunes, Android
Motorola markets
� Upon installing app, users can make
use of many functions: navigation to
the point with most available taxis,
time slide to plan your night etc…
� New taxi data are fed into the
system to make the prediction
algorithm more accurate
| 19-06-2012 | Creativity Talk: Open Services Innovation32 |
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-produce with partner:
Cab Sense: Value Capture
� Sense Networks uses Cab Sense to
showcase the power of their
machine learning algorithm – their
main product
� Increase in revenue and passenger
satisfaction for NYC Taxi &
Limousine Commission
� Greater satisfaction and service
efficiency for the taxi hailers.
| 19-06-2012 | Creativity Talk: Open Services Innovation33 |
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-produce with partner:
What can we learn from Sense Networks?
� If you own a good technology, look
outside its current application
� Look for partners in the new market
that have access to the target group
� Use the app market to showcase
what your technology can do to fuel
your revenue growth
| 19-06-2012 | Creativity Talk: Open Services Innovation34 |
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Upstream + Downstream possibilities:
Our Framework
| 19-06-2012 | Creativity Talk: Open Services Innovation35 |
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HealSeeker by J&J CabSense
ABN AmroSwift
EUREX –
Deutsche Boerse
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-produce with customer:
ABN Amro: Arena
� Arena has been set up by the
Dialogues House – one of ABN
Amro’s ventures to facilitate intra-
company conversation and to help
people share ideas and jobs.
� The company believes that radical
ideas come from connecting people
with similar interests
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-produce with customer:
Arena: Value Creation
� People with different interests
create value for each-other and the
company
� The idea was to foster the company
culture and facilitate creative
thinking
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-produce with customer:
Arena: Value Delivery
� Arena serves as a micro-jobbing
market with open positions
� Amount of hours per week is
standardised across all tasks so they
are equal
� Employees are allowed to give up a
task they dislike as long as they take
on another one they like
� The original task owner is still
responsible for the result
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-produce with customer:
ABN Amro: Value Capture
� Boost in internal communication
and alignment
� Performance boost – workforce is
happier and more productive
� Lower employee turnover
� Leaner Structure
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-produce with customer:
What can we learn from ABN Amro?
� Open innovation does not need to
happen solely in the R&D field
� Partners for Innovation don’t
necessarily need to be outside the
boundaries of your company
� Collaboration is easy and successful
as long as there is a common goal
equally attractive to all parties
involved
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
But where exactly is the value created for
the customer?
| 19-06-2012 | Creativity Talk: Open Services Innovation41 |
Search and Selection
PurchaseService
Experience
Exa
mp
le o
f O
I
Co-created advice:
Amazon
Netflix prize
Many in one service
bundles:
Brussels Loft,
NU.nl
Gamification/
Customisation:
Raytheon & Disney
KLM meet & seat
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-created advice:
Netflix
| 19-06-2012 | Creativity Talk: Open Services Innovation42 |
� 400 000 participants
competing and collaborating
to design the best
recommendation system in
the movie rental industry
� Netflix knew it probably
wouldn’t win on price with
the likes of Walmart, so it
competed smart
� Walmart, Blockbuster and
others competed at the
purchase point
� Netflix chose a different
strategy and created a value
beyond the service result
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Many in one service bundles:
The Brussels Loft
� Focus on independents and
entrepreneurs
� You rent a desk, but you get
much more
� Exposure to fellow
independent experts
� Networking, mutual service
exchange and collaboration
on projects
| 19-06-2012 | Creativity Talk: Open Services Innovation43 |
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Gamification/Customisation:
Raytheon & Disney
� Set up by Raytheon as part of a
wider strategic MathMovesU
programme in 2009
� Goal is to secure future
employee base by promoting
engineering education amongst
younger generation
� Partner up with Walt Disney
Imagineering to let children
design their own roller coaster
ride
� Combination of Fun & Maths
Education
| 19-06-2012 | Creativity Talk: Open Services Innovation44 |
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
You don’t need to focus on just one stage!
| 19-06-2012 | Creativity Talk: Open Services Innovation45 |
Search and Selection
PurchaseService
Experience
Exa
mp
le o
f O
I co-created advice:
KLM Bluenity
Many in one service
bundles:
YourAirportTransfer &
KLM
Gamification/
Customisation:
KLM meet&seat
Flanders DC KenniscentrumFlanders DC Kenniscentrum
You CAN Combine Upstream + Downstream possibilities:
Air France KLM
| 19-06-2012 | Creativity Talk: Open Services Innovation46 |
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Design Co-produce
KLM In-Touch
Community
KLM iSeatzEC Solution
KLM Meet&Seat
KLM Bluenity
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
� Working together in thinking out the
future of air travel
� Permanent baggage tags with
interactive display and smart
frequent flier cards with
comprehensive travel information
used as travel documents too
� Easy check in and check out, no
airport hassle for the passengers
� Significant process efficiency
improvement and decrease in
investment costs for drop off
machines for KLM!
� Less disposable material used every
day!
Design with partner:
KLM & EC Solution
Flanders DC KenniscentrumFlanders DC Kenniscentrum
� KLM’s partner to provide a 1-stop
shop for organising the entire travel
� Saves the customer time by
providing seamless transport from
door-to-door
� makes the whole journey more
comfortable by reducing uncertainty
as taxis are informed of any delays
and accommodate for that
Co-produce with partner:
KLM YourAirportTransfer - door-to-door service
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Design with customer:
KLM In Touch community
� Started in 2008 as a virtual club of
frequent fliers
� Currently around 550 members
from all over the world interact in
English
� KLM uses the input from this
community for qualitative market
research and new product
development
� Members feel special and feel that
KLM cares, so they stay loyal
� The whole organisation is more
consumer-centric
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-produce with Customer:
KLM Meet & Seat
� Launched in February 2012 first on flights
from Amsterdam to San Francisco, Sao
Paolo and NYC
� Matching passengers sitting next to one
another through their social network
profile
� Upon booking, passengers opt in to share
details of their Facebook or Linked-in
profile and they will get to see profiles of
other passengers travelling in return
� Result: More fun and meaningful
networking on board!
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Flanders DC KenniscentrumFlanders DC Kenniscentrum
Co-produce with Customer:
KLM Bluenity
� First community site for frequent fliers
launched in 2005
� Fellow travellers share tips on hotels,
restaurants and shopping in and around
destination cities
� This makes it easier to book the right
hotels and places for business meetings
for newbies
� Passengers can make their trip plans
public on the community so fellow
passengers at the same destination can
join them
Flanders DC KenniscentrumFlanders DC Kenniscentrum
What can you do and where do you fit in?
| 19-06-2012 | Creativity Talk: Open Services Innovation52 |
Look at your customer’s decision-making journey
- Where does your customer seek value?
- Where is value being created for the customer now?
Look at your customer’s decision-making journey
- Where does your customer seek value?
- Where is value being created for the customer now?
Examine the value chain of your company
-Where is value created?
-What are other opportunities?
Examine the value chain of your company
-Where is value created?
-What are other opportunities?
What ecosystem do you need to build?
-Which partners will enable you to co-create the value?
How can your role in the ecosystem enable you to capture value?
What ecosystem do you need to build?
-Which partners will enable you to co-create the value?
How can your role in the ecosystem enable you to capture value?
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Flanders DC Kenniscentrum
Thank you for listening
Questions time!
| 19-06-2012 | Creativity Talk: Open Services Innovation53 |
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Sources 1/3
� 99Designs, company information, http://bit.ly/MHdk6e
� Abimo, Survivalgids, Interview with Sarah Kumar, 2012
� ABN Amro, Arena, In-depth Interviewm, 2011
� Air France, Bluenity, http://bit.ly/JJu3CJ
� Alam, I., 2002, An Exploratory Investigation of User Involvement in New Service Development, Journal of the Academy of Marketing Science , Vol. 30, No. 3
� Anthony, M., 2012, KLM Meet and Seat – social seating for airlines, StratChat, http://bit.ly/Kqn9ar
� ArtistShare, company information, http://bit.ly/GTbT0g
� Bernoff, J., Schalder, T., 2010, Empowered, Unleash your employees, Energise your customers, Transform your business, Harvard Business Review Press
� Brussels Loft, Interview with Bernard Perelsztejn, 2012
� Brustein, J., 2012, The Push to Make Cab Rides Smarter, New York Times, http://nyti.ms/M5CKLB
� Coyote, Conmpany Information, http://bit.ly/dGupxM
� Deuze, M., 2007, Convergence Culture in Creative Industries, International Journal of Cultural Studies, 10:243
� Edvardsson, B., et al, (2010) Involving Customers in new service development, Imperial College Press
� Gallaugher, 2008, Netflix, Cinematch Contest Case Study, http://bit.ly/JZfeLa
� Gustafsson, A., et al, 1999, Customer Focused service development in practice: a case study at Scandinavian Airlines System, International Journal of Service Management Industry, Vol.10, 4
| 19-06-2012 | Creativity Talk: Open Services Innovation54 |
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Sources 2/3
� Honebein, P., E., Cammarano, R., F.,2005, Creating Do-It-Yourself Customers, Thomson
� Janssen Pharmaceutica, Interview with Annik Willems, 2012
� Johnson, C., 2009, Disney's 'Sum of All Thrills' Ride Lets Kids Use Math Skills , Switched.com, http://aol.it/MT7LZ
� Kaulio, M., A.,1998, Customer Consumer and user involvement in product development: A framework and a review of selected methods, Total Quality Management, Vol.9, No 1
� Kiva, company information, http://bit.ly/ZS3o
� KLM, Interview with Charles Hageman, 2011
� KLM, Interview with Ignaas Caryn, 2012
� Kuusisto, A., Riepula, M., 2008, Customer Interaction in Service Innovation: Seldom Intensive but often decisive, International CINet Conference Proceedings, Valencia, Spain, 5-9 Sept 2008
� Lets Vlaanderen, company information, http://bit.ly/sVNKVV
� Miller, C., C., 2009, Designing a Ride and Learning Math at Epcot, New York Times Blog, http://nyti.ms/3slbMX
� OhMy News, Company Information, http://bit.ly/dzYDV9
� Prahalad, C.K, Ramaswamy (2004). The future of Competition: Co-creating Valur with Customers. Harvard Business Review
� Prandelli, E., et al, (2008), Collaboration with customers to innovate: Conceiving and marketing products in the networking age, Edward Elgar Publishing
� Reporter.co.za., company information, http://bit.ly/GALnvp
| 19-06-2012 | Creativity Talk: Open Services Innovation55 |
Flanders DC KenniscentrumFlanders DC Kenniscentrum
Sources 2/3
� Rhodes, M., 2008, Social media diary 07/11/2008 – Air France-KLM, Fresh Networks, http://bit.ly/8IEJknvard
� Rubin, J., 2066, Jet Blue Story booth, Coolhunters.com, http://bit.ly/GTLX8S
� Sawhney, M., et al, 2004, Creating Growth with Services, MIT Sloan Management Review, Winter 2004, Vol. 45, No. 2
� Sellaband, company information, http://bit.ly/jdU6sM
� Sense Networks, Cab Sense, http://bit.ly/L2XLXH
� Shalal-Esa, A., 2009, Raytheon, Disney collaborate on math ride, Reuters, Wed Oct 14, 2009
� Smith, T., 2009, New Interactive Simulated Thrill ride opens up at Epcot in Disney World, http://bit.ly/12i3PK
� Swift, Interview with Konstantin Peric, 2011
� Task Rabbit, Company Information, http://bit.ly/zYIl6u
� Thomke, S., 2003, R&D Comes To Services: Bank of America’s Pathbreaking Experiments, Harvard Business Review, April 2003
� Tripadvisor, company information, http://bit.ly/aP43ID
� UZ Gent, Survivalgids, Interview with Philippe Gevaert, 2012
� Van Looy, B., et al, 1998, Services Management, And Integrated approach, Second Edition, Prentice Hall
� Wikipedia, company information, http://bit.ly/Imnh
� Zopa, company information, http://bit.ly/GUPDGw, http://bit.ly/HdbOCO
| 19-06-2012 | Creativity Talk: Open Services Innovation56 |